FOREX MARKET: Naira Further Loses Value against USD at I&E FX Market Segments to N364.57/USD…

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A clerk at a money exchange bureau counts Naira, Nigerian currency, in Maiduguri, Nigeria, on Wednesday, May 1, 2019. Photographer: Jean Chung/Bloomberg

In the just concluded week, NGN/USD rate rose further (i.e. Naira depreciated) at the Investors
and Exporters FX Window (I&E FXW) by 0.14% to close at N364.57/USD amid sustained decline in
external reserves. However, Naira appreciated against the US dollar at the parallel (“black”) and
Bureau De Change markets by 0.28% each to close at N362/USD and N359.00/USD respectively.

Naira was flattish against the US dollars at the Interbank Foreign Exchange market
amid weekly injections of USD210 million by CBN into the foreign exchange market via the Secondary Market Intervention Sales (SMIS), of which: USD100 million was allocated to Wholesale SMIS, USD55 million was allocated to Small and Medium Scale Enterprises and USD55 million was sold for invisibles.

Elsewhere, the Naira/USD exchange rate rose (i.e. Naira depreciated) for all of the foreign exchange forward contracts – spot rate, 1 months, 2 months, 3 months, 6 months and 12 months rates
rose by 0.02%, 0.22%, 0.31%, 0.38%, 0.65% and 0.85% to close at N307.00/USD, N367.22/USD,
N370.03/USD, N372.94/USD, N381.93/USD and N404.02/USD respectively.

In the new week, we expect stability of the Naira against the USD across the market segements amid sustained special interventions by CBN.

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